Fidelity Investments buys 5.6% stake ($14,2 mlm) in the Hong Kong-based operator of crypto exchange OSL
Fidelity International, a spin-off from the U.S. financial services giant Fidelity Investments, has invested $14 million in Hong Kong-based BC Group, the operator of crypto exchange OSL. The company purchased 17 million shares for a 5.6% ownership position.
The purchase was revealed by a Hong Kong Stock Exchange (HKEx) disclosure filed on Feb. 17. The actual transaction occurred on Feb. 12. Fidelity International is reported to have purchased HK$110.5 million ($14.2 million) worth of BC Group shares at a price of HK$6.50 ($0.83) each.
“The placement is further evidence that major institutional investors are entering the digital asset space. It reinforces what we believe at BC Group and OSL; mainstream adoption is inevitable and leading financial firms are making investments in companies that are committed to institutional-quality infrastructure, compliance and regulatory standards,” Steve Zhang, CFO of BC Group, told The Block.
BC Group is the operator of two major services: OSL, an institution-focused digital asset platform, and Branding China, a PR and marketing agency.
OSL is one of the biggest cryptocurrencies exchanges within Asia which focuses on both institutional as well as individual investors offering services like trading, custody and brokerage. Recently, the firm applied for Hong Kong Securities and Futures Commission licence as per digital asset framework category.
Fidelity International was founded in 1969, originally as an investment subsidiary to the Boston-based financial giant targeting overseas markets. It was spun off from Fidelity as an independent entity in the 1980s.
According to the company’s own disclosures, Fidelity International was managing total client assets of $418.8 billion across Asia, Europe, the Middle East and South America as of June 2019.